Keshun(SZ:300737) Guoxin Securities·2024-09-04 11:00Investment Rating - The investment rating for the company is "Outperform the Market" [1][3][15] Core Views - The company is actively adjusting to improve profitability, with a significant increase in gross margin. Despite a continued revenue decline in Q2, the net profit has shown a year-on-year recovery [1][5] - The company is expected to benefit from a continuously improving supply structure as the industry accelerates its clearing process. The company is positioned as a leading player and is likely to gain further advantages in the future [1][12] Summary by Relevant Sections Financial Performance - In H1 2024, the company achieved revenue of 3.47 billion yuan, a year-on-year decrease of 20.0%. The revenue breakdown includes waterproof membranes (1.82 billion yuan, -19.7%), waterproof coatings (0.96 billion yuan, -10.7%), and waterproof engineering construction (0.54 billion yuan, -26.5%). The net profit attributable to shareholders was 94 million yuan, an increase of 54.9% year-on-year [1][5] - The gross margin for H1 2024 was 23.5%, up 2.3 percentage points year-on-year. The gross margins for waterproof membranes, coatings, and engineering construction were 21.0%, 33.9%, and 13.8%, respectively [1][5][12] Cash Flow and Receivables - The company reported a net cash flow from operating activities of -1.43 billion yuan in H1 2024, a decrease in net outflow of 680 million yuan compared to the same period last year. The cash collection ratio improved to 0.92, while the cash payment ratio was 1.46 [1][10] - As of H1 2024, the total accounts receivable and notes receivable amounted to 4.73 billion yuan, a decrease of 990 million yuan year-on-year, indicating improved collection efforts [1][10][12] Earnings Forecast - The earnings per share (EPS) forecast for 2024-2026 is projected to be 0.18, 0.28, and 0.39 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 23.7, 15.0, and 10.8 times [1][12][13]